CCC4

CONTINUINGCOOKIECHRONICLE

(a)
COOKIECREATIONS
IncomeStatement
For the TwoMonthsEndedDecember31, 2011
Revenues
Servicerevenue...............................................................
Expenses
Suppliesexpense.............................................................
Salariesand wagesexpense.............................................
Advertisingexpense.........................................................
Utilitiesexpense..............................................................
Insuranceexpense...........................................................
Depreciationexpense.......................................................
Interestexpense..............................................................
Total expenses............................................................
Net income..........................................................................

$4,515
$1,025
1,006
165
125
110
40
15
2,486
$2,029

COOKIECREATIONS
OwnersEquityStatement
For the TwoMonthsEndedDecember31, 2011
OwnersCapital, November1.................................................
Add: Net income...............................................................
Less: Drawings...................................................................
OwnersCapital, December31................................................

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

$ 800
2,029
2,829
500
$2,329

4-1

CCC4(Continued)
(a) (Continued)
COOKIECREATIONS
BalanceSheet
December31, 2011
Assets
Currentassets
Cash................................................................................
Accountsreceivable..........................................................
Supplies...........................................................................
Prepaidinsurance.............................................................
Total currentassets......................................................
Property,plant, and equipment
Equipment........................................................................
Less: Accumulateddepreciationequipment......................
Total assets.................................................................

$1,180
875
350
1,210
3,615
$1,200
40

1,160
$4,775

Liabilitiesand OwnersEquity
Currentliabilities
Accountspayable..............................................................
Salariesand wagespayable................................................
Unearnedservicerevenue..................................................
Total currentliabilities...................................................
Long-termliabilities
Interestpayable................................................................
Notespayable...................................................................
Total long-termliabilities................................................
Total liabilities........................................................
Ownersequity
Ownerscapital.................................................................
Total liabilitiesand ownersequity..................................

4-2

0$

75
56
300
$ 431

15
2,000
2,015
2,446
2,329
$4,775

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CCC4(Continued)
(b)
Date

GENERALJOURNAL
AccountTitlesand Explanation

2011
Dec. 31

Debit

ServiceRevenue...........................................
IncomeSummary......................................

4,515

31 IncomeSummary..........................................
Salariesand WagesExpense......................
UtilitiesExpense.......................................
AdvertisingExpense.................................
SuppliesExpense.....................................
InsuranceExpense...................................
DepreciationExpense...............................
InterestExpense.......................................

2,486

31 IncomeSummary..........................................
OwnersCapital........................................

2,029

31 OwnersCapital.............................................
OwnersDrawings.....................................

500

J4
Credit

4,515

1,006
125
165
1,025
110
40
15

2,029

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

500

4-3

CCC4(Continued)
(c)

COOKIECREATIONS
Post-ClosingTrial Balance
December31, 2011

Account
Cash............................................................................
AccountsReceivable......................................................
Supplies.......................................................................
PrepaidInsurance.........................................................
Equipment...................................................................
AccumulatedDepreciation,Equipment.............................
AccountsPayable..........................................................
Salariesand WagesPayable...........................................
UnearnedServiceRevenue.............................................
InterestPayable.............................................................
NotesPayable...............................................................
OwnersCapital.............................................................

Debit
$1,180
875
350
1,210
1,200

$4,815

4-4

Credit

40
75
56
300
15
2,000
2,329
$4,815

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions